‘Will reduce gradually’: PM says sudden deficit cuts risk hurting education, STR and healthcare allocations

AI Summary

Prime Minister Anwar Ibrahim stated that the Malaysian government is gradually reducing the fiscal deficit to decrease the national debt burden. A sudden reduction could impact allocations for education, Sumbangan Tunai Rahmah (STR) assistance, and healthcare. The deficit decreased from 5.5% of GDP in 2022 to a projected 4.1% in 2024. This phased approach aims to control rising debt, with new debt falling from RM100 billion in 2021 to a projected RM76.8 billion in 2024. Increased allocations for STR, education, and healthcare have boosted investor confidence.